IRS Jovem youth tax exemption expanded

The State Budget for 2025 materially expanded IRS Jovem — Portugal's youth income-tax exemption. It now applies to taxpayers up to age 35 (raised from 30 and narrower prior thresholds), for up to 10 years, with 100% exemption in year one stepping down to 25% in years 8-10, subject to an earnings cap.